For numerous Clever rental property owners, the most valuable asset they possess is real estate. However, if you think that the definition of an asset is something that produces cash flow, it could be argued that your most valued asset isn’t your property but your tenant. In the end, a vacant rental house does not generate any rental income; you must have rent payments to see a profit.
Rental property investing is a business, and in order to achieve success, you should create customers that are loyal and satisfied. In the business of rental real estate investing, your “customers” are your tenants, which means caring about them and making sure they are content in the rental home is your biggest priority.
Tenant Satisfaction: It’s Just Good Business
Tenant turnover is one of the most widespread basis rental property owners see a considerable drop in their annual cash flows. Owning a vacant rental property, even just briefly, comes with a lengthy list of extra expenses, like cleaning, repair costs, and lost rent.
Since it can take time to find a new tenant, particularly with all of the advertising costs, background checks, and other expenses accompanying that process. Furthermore, your bottom line is further damaged because all of your rental’s ordinary expenses are not compensated by the rental income. Should your tenants leave far too often, you won’t be able to notice any significant profits from your rental property.
So how can you avoid this situation? By doing what you can to reduce or eliminate tenant turnover. Your first action is to find good tenants and then work hard to keep them. A good tenant will not only respect and follow the terms of their lease but will do so with vigilance and common sense. Since the property’s condition is important to a good tenant, they will want regular communication to occur with their landlord, to give an account of any maintenance issues and raise questions.
In conclusion, a good tenant will consistently pay rent on time and in full each month, supplying you with stable rental income for the entire time they stay in the home. When you meet a good tenant, you should repeatedly entreat them to stay in your rental home for as long as possible.
Valuing Your Assets
One of the best ways to encourage a tenant to stay in your rental long-term is to be genuinely concerned for their well-being and also treat them with respect. By doing so, your tenant will know for sure that they are not just an amount in your balance sheet but that they are truly valued as a person. Why would this matter? Because, when tenants feel valued, they are more likely to respond positively. They would treat the rental home with more care.
There’s no need to wait. You can help your tenant feel valued immediately. Start cultivating that positive relationship by having regular and productive communication. When there is a request placed for maintenance or repairs, you should respond quickly and appropriately. Also, make sure you resolve the issue within the allotted timeframe you promised. Give advance notice to your tenant whenever you need to enter the property. Always ask for their schedule before making appointments for home services. This is how you show your tenant respect.
As an investor, you want your investment property to perform well– financially speaking. But as a landlord, you must put your tenants first. This is how you maximize your profits. When you see that your most valuable assets are actually your tenants and not the real estate you own, you can prioritize tasks that help you achieve your property ownership goals.
At Real Property Management Momentum, we understand the value of tenants. That is why we offer Clever property management services that include finding and keeping good tenants for your rental homes. Would you like to learn more about what we have to offer rental property owners like you? Contact us online or call us at 417-220-4100 today!
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